TSX:PXT

Stock Analysis Report

Parex Resources

Executive Summary

Parex Resources Inc. engages in the exploration, development, production, and marketing of oil and natural gas in Colombia.

Snowflake

Fundamentals

Flawless balance sheet and good value.

Share Price & News

How has Parex Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.6%

PXT

0.2%

CA Oil and Gas

0.2%

CA Market


1 Year Return

-7.1%

PXT

-11.3%

CA Oil and Gas

2.4%

CA Market

Return vs Industry: PXT exceeded the Canadian Oil and Gas industry which returned -11.3% over the past year.

Return vs Market: PXT underperformed the Canadian Market which returned 2.4% over the past year.


Shareholder returns

PXTIndustryMarket
7 Day-1.6%0.2%0.2%
30 Day-15.2%-5.6%-3.3%
90 Day-16.1%-3.4%-1.8%
1 Year-7.1%-7.1%-7.3%-11.3%6.0%2.4%
3 Year13.9%13.9%-16.3%-24.7%14.2%4.0%
5 Year82.4%82.4%-20.8%-33.0%27.2%8.6%

Price Volatility Vs. Market

How volatile is Parex Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Parex Resources undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PXT (CA$18.59) is trading below our estimate of fair value (CA$103.03)

Significantly Below Fair Value: PXT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PXT is good value based on its PE Ratio (6.6x) compared to the Oil and Gas industry average (8.6x).

PE vs Market: PXT is good value based on its PE Ratio (6.6x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PXT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PXT is overvalued based on its PB Ratio (1.6x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is Parex Resources forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

11.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if PXT's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if PXT's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PXT's revenue (11.7% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: PXT's revenue (11.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PXT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Parex Resources performed over the past 5 years?

65.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PXT's earnings have grown significantly by 65.9% per year over the past 5 years.

Accelerating Growth: PXT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PXT had negative earnings growth (-12.2%) over the past year, making it difficult to compare to the Oil and Gas industry average (62.2%).


Return on Equity

High ROE: PXT's Return on Equity (25%) is considered high.


Return on Assets

ROA vs Industry: PXT has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: PXT's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Parex Resources's financial position?


Financial Position Analysis

Short Term Liabilities: PXT's short term assets ($448.8M) exceeds its short term liabilities ($208.7M)

Long Term Liabilities: PXT's short term assets (448.8M) exceeds its long term liabilities (61.1M)


Debt to Equity History and Analysis

Debt Level: PXT is debt free.

Reducing Debt: PXT has no debt compared to 5 years ago when its debt to equity ratio was 18.9%.

Debt Coverage: PXT has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: PXT has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: PXT has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if PXT's debt is covered by short term assets.


Next Steps

Dividend

What is Parex Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage4.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate PXT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PXT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if PXT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PXT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PXT's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of Parex Resources's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Dave Taylor (63yo)

2.4yrs

Tenure

US$1,898,649

Compensation

Mr. David R. Taylor, also known as Dave, has been the President of Parex Resources Inc. since November 5, 2015 and as its Chief Executive Officer since May 11, 2017. Mr. Taylor served as Executive Vice Pre ...


CEO Compensation Analysis

Compensation vs. Market: Dave has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Canadian market.

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.3yrs

Average Tenure

Experienced Management: PXT's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

3.0yrs

Average Tenure

60yo

Average Age

Experienced Board: PXT's board of directors are considered experienced (3 years average tenure).


Insider Trading

Insider Buying: PXT insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$700,26026 Sep 19
Eric Furlan
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares33,000
Max PriceUS$21.22
SellUS$1,893,64525 Sep 19
Michael Kruchten
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Capital Markets & Corporate Planning
Shares85,913
Max PriceUS$22.10
SellUS$3,866,20019 Sep 19
Skeena Capital Limited
EntityCompany
Shares168,550
Max PriceUS$22.94
SellUS$4,094,50019 Sep 19
Ronald Miller
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares178,550
Max PriceUS$22.94
SellUS$676,17513 Sep 19
Skeena Capital Limited
EntityCompany
Shares31,450
Max PriceUS$21.50
SellUS$676,17513 Sep 19
Ronald Miller
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares31,450
Max PriceUS$21.50
SellUS$321,84612 Sep 19
Paul Wright
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,000
Max PriceUS$21.46
SellUS$992,16009 Sep 19
Ronald Miller
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares46,800
Max PriceUS$21.20
SellUS$992,16009 Sep 19
Skeena Capital Limited
EntityCompany
Shares46,800
Max PriceUS$21.20
SellUS$1,119,86026 Aug 19
Skeena Capital Limited
EntityCompany
Shares53,200
Max PriceUS$21.05
SellUS$1,119,86026 Aug 19
Ronald Miller
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares53,200
Max PriceUS$21.05
BuyUS$5,85026 Aug 19
Carmen Sylvain
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares300
Max PriceUS$19.50
SellUS$3,060,95012 Aug 19
Skeena Capital Limited
EntityCompany
Shares145,000
Max PriceUS$21.11
SellUS$2,005,45012 Aug 19
Ronald Miller
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares95,000
Max PriceUS$21.11
SellUS$5,535,40517 Jul 19
Skeena Capital Limited
EntityCompany
Shares255,000
Max PriceUS$21.89
SellUS$5,535,40517 Jul 19
Ronald Miller
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares255,000
Max PriceUS$21.89
SellUS$2,152,00012 Jul 19
Ronald Miller
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100,000
Max PriceUS$21.52
SellUS$2,152,00012 Jul 19
Skeena Capital Limited
EntityCompany
Shares100,000
Max PriceUS$21.52
SellUS$317,88925 Jun 19
Robert Engbloom
EntityIndividual
Role
Lead Director
Lead Director
Shares15,000
Max PriceUS$21.19
SellUS$226,00023 Apr 19
Paul Wright
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$22.60
BuyUS$5,00926 Mar 19
Carmen Sylvain
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares240
Max PriceUS$20.87
BuyUS$5,30212 Mar 19
Carmen Sylvain
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares250
Max PriceUS$21.21
BuyUS$166,00007 Jan 19
Leo DiStefano
EntityIndividual
Role
Unit President
President & Country Manager Parex Resources Colombia
Shares10,000
Max PriceUS$16.60

Ownership Breakdown


Management Team

  • Dave Taylor (63yo)

    President

    • Tenure: 2.4yrs
    • Compensation: US$1.90m
  • Ken Pinsky (56yo)

    CFO & Corporate Secretary

    • Tenure: 10.1yrs
    • Compensation: US$1.61m
  • Lee DiStefano

    President & Country Manager Parex Resources Colombia

    • Tenure: 2.3yrs
    • Compensation: US$1.40m
  • Mike Kruchten

    Senior Vice President of Capital Markets & Corporate Planning

    • Tenure: 0.7yrs
  • Ryan Fowler

    Senior Vice President of Exploration & Business Development

    • Tenure: 0yrs
    • Compensation: US$1.07m
  • Eric Furlan

    Chief Operating Officer

    • Tenure: 1.7yrs
    • Compensation: US$1.08m
  • Cam Grainger

    Controller

    • Tenure: 0yrs

Board Members

  • Lisa Colnett (61yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$194.37k
  • Bob Engbloom (69yo)

    Lead Director

    • Tenure: 2.4yrs
    • Compensation: US$235.01k
  • Dave Taylor (63yo)

    President

    • Tenure: 2.4yrs
    • Compensation: US$1.90m
  • Wayne Foo (62yo)

    Chairman of the Board

    • Tenure: 2.4yrs
    • Compensation: US$279.41k
  • Glenn McNamara (66yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$209.87k
  • Paul Wright (59yo)

    Independent Director

    • Tenure: 10.1yrs
    • Compensation: US$199.37k
  • Bob MacDougall (56yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$192.87k
  • Ron Miller (53yo)

    Independent Director

    • Tenure: 10.1yrs
    • Compensation: US$208.37k
  • Curtis Bartlett (56yo)

    Independent Director

    • Tenure: 10.1yrs
    • Compensation: US$180.87k
  • Carmen Sylvain (58yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$180.87k

Company Information

Parex Resources Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Parex Resources Inc.
  • Ticker: PXT
  • Exchange: TSX
  • Founded: 2009
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$2.664b
  • Shares outstanding: 143.30m
  • Website: https://www.parexresources.com

Number of Employees


Location

  • Parex Resources Inc.
  • West Tower
  • 2700 Eighth Avenue Place
  • Calgary
  • Alberta
  • T2P 1G1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PXTTSX (The Toronto Stock Exchange)YesCommon SharesCACADNov 2009
QPXDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 2009
PARX.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 2009

Biography

Parex Resources Inc. engages in the exploration, development, production, and marketing of oil and natural gas in Colombia. The company holds interests in onshore exploration and production blocks totaling ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:09
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.